Why Argentina Is Paying a Premium for Stablecoins

The Breakdown

Blockworks

Investing, Business

4.8 • 806 Ratings

🗓️ 6 July 2022

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, Chainalysis and FTX US. On today’s episode, NLW looks at a number of crypto events from the long weekend, including: Why Argentines flooded into stablecoins and drove the price of tether above $1 over the weekend Whether on-chain bottom signals are reliable this cycle The latest in crypto contagion - Nexo is a security-first platform where you can buy, exchange and borrow against your crypto. The company safeguards your crypto by relying on five key fundamentals including real-time auditing and insurance on custodial assets. Learn more at nexo.io. - Chainalysis is the blockchain data platform. We provide data, software, services and research to government agencies, exchanges, financial institutions and insurance and cybersecurity companies. Our data powers investigation, compliance and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases. For more information, visit www.chainalysis.com. - FTX US is the safe, regulated way to buy Bitcoin, ETH, SOL and other digital assets. Trade crypto with up to 85% lower fees than top competitors and trade ETH and SOL NFTs with no gas fees and subsidized gas on withdrawals. Sign up at FTX.US today. - Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsors is “The Now” by Aaron Sprinkle. Image credit: hernan4429/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.1	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:14.8	The breakdown is sponsored by nexo.io, chain aliasis, and FtX, and produced and distributed by CoinDesk.
0:22.8	What's going on, guys? It is Tuesday, July 5th, and today we are talking about why Argentinians
0:28.7	are paying a premium for stable coins. Before we get into that, however, if you are enjoying the
0:34.5	breakdown, please go subscribe to it, give it a rating, give it a review,
0:38.1	or if you want to dig deeper into the conversation, come join us in the Breakers Discord.
0:43.0	You can find a link in the show notes or go to bit.ly slash breakdown pod.
0:47.7	Also a disclosure as always. In addition to them being a sponsor of the show, I also work with FTX.
0:54.5	All right. So today we are catching up on some of the crypto news after the long holiday
1:00.9	weekend, at least in the U.S. hope all of the U.S. listeners out there had a great America's
1:06.0	birthday. Today, however, we're going to start with what seemed to me like easily one of the most
1:11.5	interesting stories from over the weekend. On Saturday, the Economic Minister of Argentina,
1:17.1	Martin Guzman, announced that he was resigning effective immediately, and this was a huge,
1:23.8	huge shock. Guzman had been the chief architect of the recent deal with the IMF. This was
1:30.0	agreed to in March and granted the country access to a $44 billion loan over a 30-month term
1:36.5	that was meant to meet balance of payments shortfalls, reduce persistent high inflation,
1:41.9	and overall help Argentina transition to a more credible monetary
1:45.2	policy. Behind the scenes, there has been a lot of political turmoil. Guzman has been a minister
1:51.3	since 2019, but the IMF deal was not necessarily the most popular among some of his fellow
1:57.2	officials. In particular, it caused a huge rift between Guzman and the vice president,
2:03.0	Christina de Kurchner, who used to be the president of Argentina, by the way, who had voted
	...

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